New iPod Shuffle Contains $22 Worth of Parts - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

New iPod Shuffle Contains $22 Worth of Parts

BusinessWeek reports on a teardown of the new iPod shuffle by research firm iSuppli, revealing that Apple's diminutive player contains approximately $22 worth of parts.

All told, the cost of the shuffle's components, the headphones, and the packaging it ships in comes to $21.77, according to iSuppli's estimates. That's about 28% of the device's retail price. The smaller the component cost as a percentage of price, the higher the potential profit. This suggests the per-unit profit margin on the shuffle is higher than on other iPod models. The component cost for the first iPod touch released in 2007, for instance, amounted to about $147, or about 49% of its $299 retail price. The component cost of the third-generation iPod nano, also released in 2007, amounted to about 40% of its retail price.

According to iSuppli's analysis, over half the cost comes from two Samsung components, the main controller chip and the 4GB of flash memory at approximately $6 each. The battery, capacitors, and resistors in the new iPod shuffle were also discovered to be remarkably small by industry standards.

The device contains a tiny lithium ion battery that costs $1.20, and that Rassweiler describes as "the smallest we've ever seen." And for a company that doesn't ignore the tiniest of details, the most mundane of components are the most advanced available. The device's so-called passive components - capacitors and resistors - are unusually small. Known by their numeric label 01005, which in electronics shorthand describes their dimensions in millionths of a meter, they're about the size of a grain of salt and cost fractions of a penny each. But they're half the size of what had previously been considered the smallest device of their type, those labeled 0201.

iSuppli's calculations consider only the actual parts of the device and do not include research and development, manufacturing, distribution, and patent royalty costs.

Related Forum: iPod touch and iPod

Popular Stories

iPhone 18 Pro Deep Red Feature

iPhone 18 Pro Launching Later This Year With These 12 New Features

Wednesday March 18, 2026 7:39 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another six months or so, there are already plenty of rumors about the devices. It was initially reported that the iPhone 18 Pro models would have fully under-screen Face ID, with only a front camera visible in the top-left corner of the screen. However, the latest rumors indicate that only one Face ID component...
imac video apple feature

Apple Released Yet Another New Product Today

Friday March 20, 2026 2:39 pm PDT by
Apple has unveiled a whopping nine new products so far this March, including an iPhone 17e, iPad Air models with the M4 chip, MacBook Air models with the M5 chip, MacBook Pro models with M5 Pro and M5 Max chips, the all-new MacBook Neo, an updated Studio Display, a higher-end Studio Display XDR, AirPods Max 2, and now the Nike Powerbeats Pro 2. iPhone 17e features the same overall design as...
ios 26 4 yellow

Here Are Apple's Release Notes for iOS 26.4

Wednesday March 18, 2026 11:56 am PDT by
Apple provided developers and public beta testers with the release candidate versions of iOS 26.4 and iPadOS 26.4, which means we're going to see a public launch as soon as next week. The RC versions of the software include Apple's official release notes, giving us final details on what's included in the update. Apple Music - Playlist Playground (beta) generates a playlist from your...

Top Rated Comments

221 months ago
Why is everyone so defensive? The article isn't critical of Apple or the Shuffle, they state that the Shuffle margin is actually likely less than other iPods.

iSuppli always does these breakdowns for major electronics devices. It goes without saying they are strictly estimating cost of goods sold, which excludes fixed costs such as development, marketing, etc.

People are just trying to head off the usual trolls who whine about how greedy Apple is, how Apple is a monopoly, and how all this technology should be free or that the price should be determined by what they are willing to pay, which is nothing.
Score: 1 Votes (Like | Disagree)
Related Apple News: Sport | Iphone | Buyers Guide | Business | Travel